EVP, marketing
FAO Schwarz
New York, New York
In the mid-1990s, legendary toy store FAO Schwarz lost its differentiation in the marketplace and got stomped by Wal-Mart. Kim Richmond, who has been with the company three years, plays a key role in the revitalization.
When the private-equity firm D.E. Shaw acquired FAO, there was no compelling reason to shop here. That's why we closed down all of our business operations and spent the next 10 months reinventing ourselves. FAO is a complex brand: People have emotional touch points with us, yet we needed to forge a new vision. We started with our merchandise. We went to vendors and talked to them about personalizing the experience for every child. Now we have an adoption center with dolls with different eye colors, skin tones, and hair colors. You should see the girls labor over their decisions. We also have the Hot Wheels Factory: You choose the car, color, engine, and wheels -- then you watch it get made on the screen. When it came time to hire new staff, we weren't looking for retail background. We were looking for passion. You're on stage the whole time you're working here, so we rented an off-Broadway theater in New York and had a casting call. We put 20 toys out on stage, and each applicant had to pick one and perform with it.
We opened the doors in New York last Thanksgiving. We didn't know who would come. At 10:00 a.m., two toy soldiers rolled out the red carpet while a third trumpeted our song. All of our associates applauded as customers came in. There was a line around the block that didn't go away until after Christmas.
CEO, Piaggio USA
New York, New York
Vespa sped into America's heart on the long trail of Roman Holiday, the 1953 movie that made Audrey Hepburn a megastar. Pulled from the United States in the 1980s due to EPA guidelines, it reemerged, reengineered, in 2001.
A lot of companies have a name, and they assume that a name is a brand. No. Brands are something that take a very long time to develop, a mix of science and art. Some of the things you can explain, some you can't. For instance, how many industrial-design products exist 60 years later?
Ever since it was founded in 1946, Vespa has been a social phenomenon. Communities and clubs for Vespa owners formed all over the world. It became trendy with actors and actresses in Hollywood. All of a sudden, you have Roman Holiday. From a marketing and PR standpoint, the product was an icon.
We weren't in the United States for many years, but the Vespa clubs remained in place. People were dealing vintage Vespas, importing newer ones. It has provided a history for the company in the United States. We're now trying to revamp this concept of the Vespa club with some updated technologies like blogs. It's a way to promote the experience and get people together. If you're an Italian like me, you started to ride your first scooter when you were 14. Scooters aren't a mystery. But if you're an American, you probably have no clue. The people who belong to those clubs are very passionate advocates of the brand. They're very good at educating new customers, which is helpful, because the major barrier to sales is the education of potential customers. When people talk about the product and exchange information, it becomes part of the Vespa culture, and it's critical to the brand.
EVP, global product marketing, Corel
Ottawa, Ontario
In 1989, Corel was riding high because of its breakthrough graphics program Corel Draw. Although it acquired WordPerfect in 1996, a series of ambitious but wrongheaded R&D efforts weakened its standing. Vector Capital purchased Corel in 2003. Jacqueline Maartense joined shortly thereafter to repeat the success she had running Quicken at Intuit.
I'm here to take Corel back to some fundamental roots in terms of getting close to customers. If everybody gets close to customers, the organization will build a better product. It's as simple and as hard as that. The dialogue you inspire with customers and employees is where real insight comes from. Some of our programs that do this seem wacky, but they generate employee involvement and interest. In one, we took all of the engineering and marketing people and trained them for a day in how to speak with customers on the phone. The engineers thought they knew who used our products, but they only knew Corel power users. We exposed them to people who had only been using our product less than a month, and it changed their design thinking.
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